Despite being held under a microscope for its labour practices, fast fashion retailer Shein is reportedly going ahead with its initial public offering on the London Stock Exchange. According to sources, it’s aiming to list my mid-year.
Assuming it gains regulatory approvals for the initial public offering, Shein is aiming to list in London in the first half of the year, according to two Reuters sources with “direct knowledge of the matter”.
The IPO could be completed as early as Easter, April 20, one of the sources said. A second person with knowledge of the matter said Shein is working towards listing in the first half of this year, but the definitive timeline is still in flux.
Britain’s finance minister Rachel Reeves is currently paying a visit to China where she will meet with Vice Premier He Lifeng to discuss economic and financial cooperation. This could be the push in regulatory approvals Shein needs to list.
The company, known for its competitively priced wares, was valued at $66 billion in a fundraising round last year. Following the 10% rule, Shein’s UK IPO would be worth $6.6 billion. The largest European IPO this year was a $2.9 billion deal by Puig.
Shein began exploring its London listing in early 2024. Its original plan to list in New York came unstuck following opposition from US lawmakers.
The Chinese-founded company confidentially filed for a London listing with the Financial Conduct Authority (FCA) in June. However, the FCA was taking longer than usual to approve its application. This was because it needed to check its supply chain oversight and assess legal risks after China’s Uyghur population challenged the listing, two sources told Reuters.
Britain’s Independent Anti-Slavery Commissioner has also raised concerns over Shein achieving its UK IPO due to allegations over labour practices in its supply chain.
Earlier this week, on Tuesday, Yinan Zhu, EMEA general counsel at Shein, appeared before the Business and Trade Committee.
The company has faced allegations that some of the clothes it sells contain cotton sourced from the north-western region of Xinjiang, where China has been accused of subjecting members of the Uyghur minority group to forced labour and genocide.
MPs grew frustrated as Zhu repeatedly declined to answer inquiries over the company’s cotton supply chain and potentially listing its shares on the London Stock Exchange.
Liam Byrne, who chairs the committee, said: “For a company that sells a billion pounds to UK consumers and which is seeking to float on the London Stock Exchange, the committee has been pretty horrified by the lack of evidence you have provided.”
